Oil firm, carrier ink P7B fuel supply deal

By Jed Macapagal

February 14, 2018

CONCEPCION, Tarlac - Independent oil firm, PTT Philippines Corp. is keen on further expanding its operations in the country with plans to add a convenience store business aside from the current oil retailing and a chain of coffee shops.

The company yesterday announced it was renewing its jet fuel supply agreement with Cebu Pacific worth P7 billion for 2018.

Danilo Alabado, PTT Philippines Trading Corp. general manager, told reporters at the launch of the company’s largest service station in the Philippines here Cebu Pacific’s order for this year increased by 10 percent.

“(Cebu Pacific’s order) is increasing annually. Last year, the estimated worth of their order was around P6 billion. Cebu Pacific’s order from us comprises 60 percent of our aviation fuel business and 25 percent of the entire business volume,” Alabado added.

For over 15 years, PTT has been supplying jet fuel to Cebu Pacific and currently accounts most of the airline’s total jet fuel requirements especially for its flights using the Ninoy Aquino International Airport, the Diosdado Macapagal Airport in Clark as well as the Visayas routes.

PTT Philippines also said it supplies two-thirds of Cebu Pacific’s local oil demand of around 30 to 35 million liters.

Alabado said the company is eyeing to forge a supply deal with Cebu Pacific’s planes using airports in Asia, particularly in Australia, Cambodia, Dubai and Hong Kong.

Thitiroj Rergsumran, PTT Philippines marketing director, said head office in Thailand is currently auditing a retail station in Belfast, Fairview, Quezon City to host PTT’s convenience store venture in the Philippines.

“On the 16th (of February), I will go back to Thailand to conclude the plan to expand Jiffy to the Philippines. Yes, (it’s a done deal but) it depends on the strategic plan. The first one, the first prototype, we will conclude about this, how much for the franchise fee,” Rergsumran said.

Jiffy is the oil company’s convenience store business in Thailand.

Wisarn Chawalitanon, PTT Thailand’s executive vice president for international marketing, said there are opportunities to further expand the convenience store venture in the Philippines but will initially focus on the prototype in Quezon City.

The company is eyeing to build about 30 more retail stations this year. These will be located in Luzon and Southern Visayas.

The company also eyes 10 new Café Amazon coffee shops in Luzon.

PTT currently has 122 gasoline stations located in various parts of Luzon and Central Visayas.

Column of the Day

‘The Foreign Corrupt Practices Act of 1977 (FCPA) (15 U.S.C. § 78dd-1, et seq.) is a United States federal law known primarily for its main provision: Against bribery of foreign countries’ food management officials.’

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